By KYIV. Nov 17 (Interfax-Ukraine) – Ukrainian networks of fuel filling stations managed to enter the European market of motor fuel after the loss of Russian and Belarusian markets after the start of a full-scale invasion due to the offer of a competitive price and fast contracts, said Vasyl Danyliak, the CEO of the OKKO group of companies.
"Ukrainian companies entered the wrong supply market, where everything was contracted a long time ago. Accordingly, they could compete with prices and quick contracts. Despite the unacceptability of the price, we began to contract 100% of possible resources in all corners of Europe," he said at the Kyiv International Economic Forum on Thursday.
At the same time, he noted that such decisions were made, in particular emotionally, although they were not always economically justified.
He explained that European supply chains are significantly longer than those from the east and north, when "pipe deliveries were 3-4 days, fuel was transported by rail from the nearest Belarusian plants to the average tank farm for a maximum of seven days."
"And in Europe, the term of supply could stretch for two months or more. For example, we bought rather expensive fuel in the Amsterdam-Antwerpen region. The supply logistics are complicated: first, in small (due to the low level of the Rhine) barges to Germany, then it is poured into large terminals, and then you wait for the shipment, because there are queues there. So, in mid-April, we made an advance payment, and the last batch arrived, if I’m not mistaken, in October," Danyliak described the situation.
At the same time, he noted that even if the company had known in advance how difficult the delivery would be, it would still, most likely, have concluded this contract.
"There was such a shortage that the decision was obvious. They didn’t think that it would be not very profitable," the OKKO CEO assured.
He also emphasized that the change in the logistics of petroleum products since the beginning of the war was the biggest challenge not only for OKKO, but for the entire industry.
